Lower Gas Prices Could Save Consumers $270 Billion Annually

 

Gas prices have fallen below $2 per gallon in so many states now, I figured it's not news any more, and it was time to move on to a new benchmark.

So, here some news: Gas prices in Houston fell below $1.75 Tuesday at some stations (see chart above), and are the lowest in almost two years (see chart below, for average Houston prices).

Moreover, the sharp decline in average prices from the peak of $3.94 in July to $2.04 per gallon in Houston over the last four months represents an annual savings for consumers of more than $270 billion (see calculation here), compared to the outcome if gas prices had stayed at $3.94.

Comments

[CLH:]

Im not sure if your figure is right but there is no doubt that the lowering of gas prices has put a huge amount of money in Americans pockets.

Let hope the gov. doesnt pass gas taxes and take it away because of foolish beliefs in earth warming.

2008 Nov 05 09:07 PM

[Paul Killinger:]

Don't worry. Our new President will fix this problem.

2008 Nov 06 08:22 AM

[john s. gordon:]

our new president has a number of problems to fix including reining in unbridled commodity speculation using 40/1 leverage.
> jack

2008 Nov 06 09:13 AM